Project Scope and Relationship to China's Agenda 21

This project seeks to improve the arrangement and structure of industry; develop and apply cleaner technologies; and enhance energy efficiency and conservation. The project is based on programme areas 11A, 11C, and 12B of China's Agenda 21.

The activities of this project are designed to develop a broad cooperative relationship between the environmental regulatory, industrial, and research and development sectors. By closely cooperating with one another, each will understand the needs and constraints of the other and formulate approaches to cleaner production practices which may be disseminated and developed for specific industries. In practice, the program will nurture a sustained cooperation between the three sectors so that cleaner production capabilities including management techniques, technologies and monitoring will evolve. The project aims to develop a broad base of trained individuals in the three sectors which can implement industrial pollution reduction at all levels, and assist in the development of a regulatory and financial incentive framework which would guide industries toward sustainable development.

1. Background

China's economy will grow rapidly in 1990's. The resulting growth in the industrial sector such as energy and raw materials will increase the number of pollution intensive industries and place greater strain on China's environment. This will impact the overall quality of national economic growth and impair the foundation of national development.

China, as with most other developing countries, has adopted obsolete passive modes of `end of the pipe' (EOP) industrial pollution control, in which manpower, capital and environmental resources are invested in pollution discharge control at the end of the production process, resulting in increased economic burden on inefficient facilities. The emphasis on EOP treatment has not only hindered environmental protection efforts, but has also prevented enterprises from implementing effective environmental control measures, thus resulting in a lack of coordination between industrial production and environmental protection.

There exists an urgent need for China to formulate a series of innovative policies and management measures to strengthen current environmental practices. These measures should include coordinating environmental protection and economic development by promoting industrial waste minimization and thus controlling industrial pollution. The approach includes management capability building, technological upgrading, and industrial technical innovation.

Developed nations have made significant industrial waste management advances in recent years. By adopting pollution prevention policies, cleaner production methods have been substituted for EOP techniques. This strategy has had two clear advantages: first, industrial pollution has been reduced substantially and in some cases eliminated; second, significant savings have been realized through greater production and more efficient resource utilization and by reducing substantially the cost of waste treatment and disposal. Additionally, improved management techniques have improved productivity and product quality while reducing product costs, thus increasing competitiveness in the international markets.

This project is designed to promote the sustainability of industrial development by introducing resource saving and production life cycle pollution control strategies to China's environmental sector. Its objective is to introduce cleaner production and coordination of economic development and environmental protection through encouragement of closer collaboration between the environmental regulatory and industrial sectors. The project will be implemented through direct application of cleaner production strategies and capacity building in both China's environmental and industrial communities.

The first "cleaner production" project in China was initiated in 1993. The project tasks included the following:

• Introduction and promotion of cleaner production techniques adopted from developed countries.

• Providing training to a group of experts to develop cleaner production capabilities.

• Preforming cleaner production demonstrations in 21 facilities selected from five industrial sectors including electroplating, chemicals, textiles, food processing, and cement production.

• Compiling the draft edition of China's Cleaner Production Audit Manual.

• Initiated compiling audit guidelines for cleaner production in four industrial sectors.

  In order to further promote cleaner production, ongoing studies and industrial implementation of managerial techniques, standards and policies are essential. This proposed project therefore is designed to develop cleaner production capabilities for application throughout China.

• Long-term objectives
  • To promote cleaner production as the foundation of China's industrial development policy. Establish a comprehensive program to encompass production economics, technology, management, information dissemination and capacity building. Formulate corresponding policies, regulations and protocols to promote cleaner production.

• Immediate objectives
  • Formulating the management techniques, standards and policies for promoting cleaner production.

  • Demonstrating, implementing and evaluating the management techniques, standards and policies for adopting cleaner production methods.

  • Standardization of management techniques, standards and policies for promoting cleaner production.

  • Disseminating and propagating the management techniques, standards and policies for promoting cleaner production.

3. Activities

• 3.1 Evaluate the cleaner production management techniques, standards and policies for adoption by China's industries.
  • Investigate the cleaner production management techniques in developed countries including the US, Germany, Netherlands, Denmark and Switzerland and in developing countries including India, Malaysia and Thailand

  • Investigate the relationship between cleaner production practices and discharge permitting, emission fees, EIA requirements, China's "Three Simultaneous Mitigation Measures" and regulatory treatment deadlines

  • Formulate cleaner production managerial techniques for pollution management audits (PMAs)

  • Formulate financial incentive regulations for the implementation of cleaner production practices

  • Investigate effectiveness testing/verification regulations for implementing cleaner production techniques

  • Formulate pollution emission monitoring protocols for unit operations in production processes

  • Investigate cleaner production standards in foreign countries

  • Formulate emission monitoring criteria and standards for production processes and unit operations in ten industrial sectors

  • Formulate cleaner production emission standards for various production processes and facilities in ten industrial sectors

  • Formulate cleaner production audit parameters and testing standards for ten industrial sectors.

  • Investigate cleaner production policies in foreign countries

  • Investigate the impact of current environmental policies on cleaner production

  • Formulate policies for implementing and enforcing cleaner production strategies in new, expanded and refurbished facilities

  • Formulate approaches for recovering discharge fees for facilities implementing cleaner production techniques

  • Develop incentives and favourable policies for facilities implementing cleaner production techniques

    Project duration is for four years.

• 3.2 Implementation and analysis of demonstration projects involving management techniques, standards and policies. Implement and test various regulations, standards and policies to be demonstrated at 100 facilities in different regions of China.
  • Implement and analyze cleaner production and the short, medium and long term impacts of economic, social and technological factors on the market demands for environmental protection equipment

  • Evaluate market trends for environmental protection equipment and forecast directions for technological development

  • Select 5 to 10 major product groups for market forecasting:
    • Atmospheric pollution control equipment
    • Waste water treatment equipment
    • Solid waste treatment and recycling equipment
    • Noise and vibration control equipment
    • Environmental monitoring instruments and equipment
  • Evaluate proposals for the development of China's environmental protection equipment:

    • Priority should be given to the development of environmental protection equipment
    • Mechanical and electrical equipment that cause serious environmental pollution should be discontinued and included in the list of banned products published by the Ministry of Machine Building Industry

  • Evaluate proposals for importing technology and equipment and provide recommendations.

    The duration of this activity will be 30 months.

• 3.3 Plan and implement China's environmental protection equipment strategy:

  • Conduct studies of China's environmental protection equipment, appraise current technology and infrastructure facilities, develop capabilities and quality assurance in major facilities; evaluate technology standards, production capacities, and compare domestic and international equipment
  • Examine the impact of policies, regulations and standards on environmental equipment market supply and demand, utilization of waste material and energy conservation in the development of China's environmental protection equipment manufacturing industry
  • Provide a report highlighting the forecasted development of China's environmental protection equipment manufacturing industry between 1995-2005, identify equipment which should be given development and manufacturing priority and propose a budget
  • Encourage environmental protection industries to formulate an internal business development plan

    The duration of this activity will be 42 months.

• 3.4 Develop China's environmental protection technology and equipment data base and consulting service, including four subsidiary bases engaged with products and technology, manufacturers, scientific and technological achievements, and foreign technology transfer.
  • Develop a technological data base of domestic environmental protection equipment
  • Develop a manufacturers data base identifying product sources and ranges
  • Develop a data base of recent research and development on environmental protection equipment to include institutions and synopsis of results
  • Develop a data base and search system of foreign environmental protection equipment and manufacturers
  • Interface the environmental protection technology and equipment data base with China's sustainable development network (SDN)

    The duration of this activity will be 54 months.

• 3.5 Develop China's environmental protection technology and equipment standard system:
  • Establish an environmental protection equipment technical assistance centre and train technical management personnel
  • Establish technical guidelines and criteria to formulate standards for environmental protection equipment which would meet international standards (ISO)
  • Formulate standards for environmental protection equipment, to include:
    • Evaluation Parameters
    • Minimum performance/manufacturing standards
    • QA/QC
    • Standards for performance testing

  • Formulate, disseminate and enforce environmental equipment standards.

    The duration of this activity will be 30 months.

• 3.6 Supervision, management and quality control system for China's environmental protection technology and equipment.
  • Establish China's environmental protection equipment, supervision, management and quality monitoring centre
  • Establishing quality testing stations for environmental protection equipment
  • Establish environmental protection equipment evaluation and training centres for quality testing personnel. Train personnel in domestic and international testing techniques and standards

    The duration of this activity will be 42 months.

    The implementing agencies will be the State Economic and Trade Commission (SETC), the National Environmental Protection Agency (NEPA), and the Ministry of Machinery Industry.

The total investment for this project is US $2 million of which half shall be sought from international sources.

• 4.1 Chinese Inputs
  • Office facilities and equipment expenses (US$ 300,000)
  • Office space and auxiliary facilities
  • Instrument and equipment expenses (US$ 500,000)
    • Computer data processing equipment
    • Environmental protection equipment and quality monitoring instruments and equipment
    • Materials and information expenses (US$ 200,000)
    • Information and statistics materials relating to environmental science, environmental protection technology and environmental protection equipment
    • Environmental protection technology and information materials in international projects obtainable in China

• 4.2 International Cooperation
  • Foreign consultant expenses (US$ 160,000)
  • Four foreign experts will be invited annually over five years, total 20 persons
  • Instrument and equipment expenses (US$ 500,000)
    • Computer data information processing equipment
    • Environmental protection equipment quality and properties monitoring instruments, laboratory equipment
    • Material and information expenses (US$ 140,000)
    • Information on environmental protection technology, equipment and clean production technology from developed countries
    • MIS software for environmental protection equipment and manufacturers in developed countries
    • International environmental protection equipment product and testing standards
  • Personnel training expenses (US$200,000)
    • Training of managerial and technical personnel

5. Benefits

This proposed project will introduce hazardous and toxic materials control laws and regulations, anti-pollution criteria and mitigation measures. The capabilities for the management and control of hazardous materials will be developed and regulatory enforcement will be initiated. The establishment of a declaration, registration, licensing and wastes exchange for hazardous wastes, is anticipated to result in a reduction in the volume of waste generated in China while providing an incentive for recovery and reuse.

The proposed hazardous waste disposal demonstration project will provide a model, and increased capabilities and experience which can be utilized by China in establishing regional central-disposal facilities for hazardous wastes. Dissemination of the experience gained in the demonstration project should produce a significant improvement in waste disposal management strategies resulting in greater awareness, regulation end environmental protection. The proposed toxic chemical management system is designed to improve toxic material handling and management thus reducing environmental pollution and adverse impacts to human health.